Sales Promotion: Groupon
Robert Sander, Maria Juarez
Groupon
 Daily deals
 Consumer -Oriented
 Coupons
 Premiums
 Price-off deals
 Event marketing
 http://www.groupon.com/salem-or
Reasons for and Goals of Sales
Promotion
 Declining brand loyalty in consumers
 Price, value, convenience
 Increased promotional sensitivity
 Consumers want to save money
 Short-term focus
 Sales promotion accelerates the purchase decision
process and generates and immediate increase in
sales.
Questions
 How many people have heard of Groupon?
 Use it?
 Does facilitating sales promotions sound like a good
idea for a business model?
Disadvantages of Sales Promotion
 Encourages consumers to purchase on the basis of
price
 This detracts from the value of the brand
 Consumers to not identify unique features of a
brand
 Short term promotions do not contribute to the
identity of the brand
Disadvantages
 It’s hard to tell how many consumers will use
promotions i.e. coupons or premiums
 *Refunds
 Groupon users often buy products they are loyal to
and would purchase anyway
 Continual sales promotion battles lead to a promotion
trap or “spiral”
Questions
 Do you think Groupon is a fad?
 Is there a way they can get their stock value back up
to their first day market close of $26?
 Should Groupon be less flexible with accepting
refunds?